AFSCME memo raises questions; here are answers

DOUG FINKE

Saturday

Sep 29, 2012 at 12:01 AMSep 29, 2012 at 8:57 AM

SPRINGFIELD -- Last week, a memo surfaced from the American Federation of State, County and Municipal Employees that updated members on the status of contract talks with Illinois state government. The memo said talks were at a “virtual standstill” because of concessions demanded by Gov. Pat Quinn of union members, including a pay cut followed by a freeze and higher health insurance payments.

SPRINGFIELD -- Last week, a memo surfaced from the American Federation of State, County and Municipal Employees that updated members on the status of contract talks with Illinois state government

The memo said talks were at a “virtual standstill” because of concessions demanded by Gov. Pat Quinn of union members, including a pay cut followed by a freeze and higher health insurance payments.

The talks have been accompanied by claims and counter-claims by the two sides over the level of AFSCME compensation. Here are a few of the questions involved.

*What’s at stake?

A new collective bargaining agreement between the state and the 40,000 state workers who are members of AFSCME. AFSCME isn’t the only union that represents state employees, but it is the largest, and its contract often serves as a model for other compensation packages.

*When does the AFSCME contract expire?

It already has. The old contract expired June 30. The state and union agreed to keep the contract terms in effect until agreement can be reached on a new pact.

*What has the administration said about AFSCME compensation?

A couple of things. Before leaving on his trip to Brazil, Quinn said, “They’ve had two contracts in the last eight years that have raised their wages by 45 percent. That’s far beyond the cost of living. We can’t afford that anymore in Illinois.”

After the AFSCME memo surfaced, the administration issued a further statement. It said, “The union of state government employees fails to recognize that the salaries and benefits the average state employee receives are unsustainable and at levels far exceeding the salaries and benefits of other unionized state employees across the country.”

*How did the administration arrive at those statements?

Let’s take them one at a time. To arrive at the 45 percent figure, the administration included both across-the-board raises included in AFSCME contracts as well as step increases given to workers.

*What are step increases?

Those are raises awarded to employees who are in the early stages of their careers. The rationale is that a newly hired employee doesn’t have the same value to an organization as an experienced worker and should be compensated accordingly.

But to give workers an incentive to stay on the job, they are given step increases in their salaries on the anniversary dates of their hiring.

It is important to know that step increases are awarded to eligible employees even if a contract doesn’t call for an across-th- board increase for all employees.

*Does everyone get step increases?

No. Step increases are awarded only to employees during their first eight years on the job. The administration says 40 to 50 percent of workers are eligible for step increases. AFSCME estimates the proportion at 40 to 60 percent.

*So not all AFSCME members got that 45 percent raise Quinn was talking about?

No. AFSCME agrees that some members might hit the 45 percent mark — butn only those hired exactly eight years ago. They’re the only ones who would have received all of the step increases and all of the across-the-board raises needed to hit that figure. The union contends that is a very small number of people.

The Quinn administration said it does not know how many employees have received 45 percent increases over the last two AFSCME contracts.

*So how much did union members make?

In response to Quinn, AFSCME has said the net increase for its members from the last two contracts is 23.25 percent. (Raises for workers in the alternative pension formula for high-risk jobs were slightly higher.) Like Quinn’s numbers, they need some explaining.

AFSCME adds up all of the increases called for in the last two contracts, starting with a 2 percent increase on January 1, 2005. The contract that expired June 30 had total raises of 15.25 percent. The contract before that had total raises of 17 percent, for a total of 32.25 percent over the two contracts.

However, during that time, AFSCME also agreed to have its members resume paying 4 percent toward their state pensions. In 1991, the state agreed to pick up that pension contribution in lieu of a raise then.

AFSCME deducts that contribution from the raises, leaving 28.25 percent in total raises called for by the two contracts. However, Quinn last year canceled raises due thousands of AFSCME members because he said the General Assembly didn’t provide money to pay for them. AFSCME is challenging that in court and the outcome is still pending.

But the union says the raises canceled by Quinn amount to 5.25 percent for about three-fourths of its members. It deducts that amount, bringing its final raise figure to 23 percent.

*What about the average salaries the administration talked about?

The administration said the average AFSCME employee makes $62,772 in Illinois, $8,000 to $18,000 more than comparable union employees make in other states. The administration said it obtained salary information from Florida, Iowa, Michigan, Minnesota, Ohio, Pennsylvania, New York and Wisconsin to make its comparison. Those states all have unionized workforces comparable to Illinois’, the Quinn administration said.

AFSCME believes there are too many disparities and other variables between the states to make a valid comparison of salaries based on averages. It argues, for example, that a state where private sector wages are higher needs to pay more to attract people to government jobs.

AFSCME cites Bureau of Labor Statistics from 2010 showing Illinois private sector wages were sixth-highest in the country. Census data from 2009 show Illinois state government earnings ranked ninth.

AFSCME also believes using averages is a poor way to compare salaries in general, because a few high salaries can skew the results.

Let’s take an example. Say a company has 12 employees. Of those, four earn salaries of $80,000 a year. The other eight earn salaries of $50,000 a year.

So the average salary of a worker at that company is $60,000 a year, even though two-thirds of the workforce earns significantly less than that.

*What happens now?

The state and AFSCME will continue negotiations. The two sides have agreed to bring in a mediator to help with talks and are searching for one acceptable to both sides.

Doug Finke can be reached at (217) 788-1527.

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